The Solomon Islands Government, through the Ministry of Finance and Treasury, received a USD 500,000 payout from the Pacific Catastrophe Risk Insurance Company (PCRIC) following the impacts of Tropical Cyclone Maila.
The payout was officially presented by PCRIC CEO Aholotu Palu to the Honourable Minister of Finance and Treasury, Rexon Annex Ramofafia, with the presence of Permanent Secretary Mckinnie Dentana and Deputy Secretary Technical, Ministry of Environment, Climate Change, Disaster Management and Meteorology, Agnetha Vave Karamui on Thursday 23 April.
Tropical Cyclone Maila caused significant impacts across Western, Choiseul, and Isabel Provinces, prompting the declaration of a State of Emergency.
The payout received highlights the importance of pre-arranged finance in providing immediate financial protection against natural disasters and supporting government relief efforts.
This marks an important milestone for the Government in securing national parametric insurance cover, given the frequency and severity of cyclones in the region. PCRIC’s risk transfer mechanism directly supports the implementation of the Government’s Disaster Risk Financing (DRF) Strategy 2024–2027.
Through this partnership, the Government has secured insurance coverage for four major hazards: tropical cyclones, tsunamis, heavy rainfall, and earthquakes, in November, 2025, with a premium of USD$125,000 that covers these four major hazards. This demonstrates the value of proactive disaster risk financing preparedness.
Speaking during the presentation, the Honourable Minister of Finance and Treasury acknowledged PCRIC’s critical role in supporting the country’s financial preparedness and strengthening government’s, fiscal resilience agenda.
“This payout demonstrates that our proactive investment in disaster risk financing is delivering real and timely support to our people. It enables the Government to respond quickly to the needs of affected communities and strengthens our overall resilience,” the Minister said.
The Minister further expressed appreciation to PCRIC for its ongoing technical and financial support in establishing a robust financial protection framework for Solomon Islands.
“We acknowledge PCRIC as a valued partner in helping Solomon Islands build resilience against climate and disaster risks. We look forward to strengthening this collaboration in the years ahead, according to the Minister.”
The funds will be used to support early response and recovery efforts, ensuring that assistance is delivered efficiently to communities affected by Tropical Cyclone Maila.
The Solomon Islands Government reaffirmed its commitment to advancing innovative disaster risk financing solutions and strengthening partnerships that safeguard the nation’s economic stability and community resilience.
– GCU
